On DEMAND: Property and Casualty Provisions and Contract Law Flashcards
INDIVIDUAL whose name appears on the policy’s DECLARATIONS
Named insured
Not everyone is named on the policy.
INDIVIDUAL whose name appears FIRST on the the policy’s DECLARATIONS
First named insured
*Usually on a commercial policy. Primary contact insurance has with a business.
Required to perform CERTAIN DUTIES that include PAYING THE PREMIUM and GIVING PROMPT NOTICE of a claim to the insurer in the EVENT OF A LOSS
First named insured
*Usually on a commercial policy. Primary contact insurance has with a business.
INDIVIDUALS or BUSINESSES that are NOT NAMED as insureds on the DECLARATIONS PAGE, but are PROTECTED BY THE POLICY, usually in regard to a SPECIFIC INTEREST.
Additional insureds
*Usually a mortgage company or lien holder on a car. If you have a house and it burns down and you rebuild or not, they may owe the mortgage company money, not the insured.
Usually added to the policy by ENDORSEMENT
Additional insureds
*Usually a mortgage company or lien holder on a car. If you have a house and it burns down and you rebuild or not, they may owe the mortgage company money, not the insured.
A TEMPORARY AGREEMENT issued by an AGENT or INSURER providing TEMPORARY COVERAGE until a policy can be issued
binder
Binder
Usually on car insurance.
All policies begin at _____ If you buy at 6 PM the night before. The binder lets you be covered.
Binder
Usually on car insurance.
All policies begin at 12:01 AM. If you buy at 6 PM the night before. The binder lets you be covered.
Binder
Usually ____, but may be ____
Binder
Usually written, but may be oral
Binder
Expires when the policy is ____ or _____________.
Binder
Expires when the policy is issued or after a specified number of days.
Binder
Effective policy date is the _____ as the date when the binder was _____
Binder
Effective policy date is the same as the date when the binder was issued
Binder
If policy is declined, binder expires on the date after _________
Binder
If policy is declined, binder expires on the date after receipt of the notice of cancellation
Policy Structure
First page is the ______ page.
Policy Structure
First page is the declarations page.
Who
What
How much
Policy Structure
Terms used in the policy
definitions
Policy Structure
Promise to pay
insuring agreement
Policy Structure
an additional amount of coverage for specific losses
additional (supplementary) coverage
Policy Structure
rules and procedures under the policy
conditions
Policy Structure
Addendums that change the policy
endorsements
Policy Structure
What or who is not covered
exclusions
*Acts of war
Common Policy Provisions
Claim settlement
If the parties can’t agree
appraisal/arbitration
3 person is the umpire
Common Policy Provisions
transfer of rights or interest
assignment
Common Policy Provisions
sharing of loss
other insurance
Common Policy Provisions
notice of claim, proof of loss
Insured has to complete the completed claim form
Loss settlement
Common Policy Provisions
liberalization, subrogation, salvage
Liberalization- have to give to customers at no charge (probably to stay competitive)
subrogation - you accept the claim from the insurance company, you waive your right to find the 3rd party that injured you, the insurance company can find and sue them
Salvage - Car is totalled. They take it and sell it to recoup. Insured can take less and keep driving the car
insurer provisions
Common Policy Provisions
standard mortgage
loss payable
no benefit to bailee
third-party clauses
2 ways to cancel the policy
Cancellation
Non-renewal
the termination of an in-force insurance policy, by either the insured or the insurer, PRIOR TO THE EXPIRATION DATE shown in the policy
Cancellation
The termination of an insurance policy AT ITS EXPIRATION DATE by not offering a continuation of the existing policy or a replacement policy.
Nonrenewal
